Figure 2a. Rydex Buying Power/ daily1) The Rydex Buying Power indicator assesses the amount of money on the sidelines;
it is “fuel” available for buying
2) This indicator assesses considers both non
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committed money (i.e., assets in themoney market fund) and committed money (i.e., assets in all of the bearish fundsthat could potentially wind up in bullish funds) as available money on the sidelines3) The indicator is calculated by taking the sum of all assets in bearish plus moneymarket funds divided by all assets in bullish plus bearish plus money market funds4) Low indicator values suggest little money on the sidelines and are consistent withexcessive bullishness (i.e., bear signals)5) High indicator values are consistent with increased buying power and areconsistent excessive bearishness (i.e., bull signals)